What is Equity?

Equity is a topic that comes up often, yet many people don’t fully understand the depth of the concept. Here are a few examples:

A deposit on a house becomes equity in the property.

Labour can be viewed as an exchange of one’s equity – time, skills, and knowledge exchanged for cash.

Shares in a company are also a form of equity, whether traded in public markets or held privately.

In theory, the greater the value created, the greater the equity that is generated. That why my personal interests Deep Tech I see much high value creation.

Many people assume that holding more equity automatically means greater control or authority. While that can often be the case, control does not always require majority ownership – minority shareholders can sometimes gain significant influence depending on governance structures, voting rights and fiduciary duties being met.

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